Daniela Kutlesa, Tax Consultant at Zuger Kantonalbank

First stage of life: singledom, education and starting a career

Young people often focus on education, career-building and financial independence. At this stage especially, a person can lay some essential tax groundwork. One important thing is to pay into pillar 3a early on. Even small amounts can be claimed as a deduction from taxable income and pay off over the long term.
With Zuger Kantonalbank’s pension products, you actively contribute to your financial pension provision and optimise your tax liability. Moreover, continuing education and retraining costs can be deducted from taxes after deducting the employer's share. Teaching materials and course fees are deductible too. Work-related expenses such as commuting and food can also be taken into account. Even though a person’s income is often lower at this stage, it is worth taking a close look at possible deductions.

Second stage of life: family, children and living

When starting a family, it is not just a person’s life situation that changes, but their tax return as well. Parents benefit from child deductions. The child deduction can be taken into account for tax purposes as early as the year of birth and applies to minors up to the age of 18. For children of full age in initial training, parents in many cantons are still entitled to claim child deductions, often up to the age of 25.
Costs for third-party childcare, such as at a daycare centre or by a child minder, can be included for tax purposes, provided that the care is needed because both parents are in gainful employment, are in education or cannot provide care themselves for health reasons. If they work part time, only on the actual days at work. Depending on the canton, maximum amounts per child and year also apply – it is worth taking a close look, as these have been adjusted upwards in many cantons in recent years and therefore allow larger deductions. Health insurance premiums can also be deducted within the limits of the statutory maximum amounts, and certain healthcare costs such as dentist costs paid by the patient themselves can be included for tax purposes if they are over a certain excess.

What options do you as a family have to save money?

Zuger Kantonalbank offers a number of alternatives to traditional savings accounts, such as the ZugerKB fund savings plan. Even with small monthly amounts, a fund savings plan enables you to systematically accumulate assets.

How do I best provide for my children?

A ZugerKB gift fund savings planis ideal for this. This allows me to make provision for future expenses and ease my child’s financial transition into adult life. What’s more, the gift fund savings plan is also ideal for godparents or grandparents who regularly want to make a financial contribution.

Third stage of life: retirement and old age

The principal tax considerations shift again in old age. A person’s income often falls, while their healthcare costs rise. Subject to certain conditions, many healthcare and care costs not covered by health insurance can be deducted from taxable income. These include dentist costs, aids and costs for a care home, for example. Retirement benefits and pensions should also be properly planned with an eye to tax so as to avoid any unexpected tax liabilities. Careful tax planning therefore remains important even after retirement. Whatever you intend to do, financial planning is the ideal way to best meet the financial challenges at every stage in life.